Rochester woman to pay $80K in restitution after financially exploiting elderly man

Colleen Siverling and her ex-husband were charged with aiding and abetting financial exploitation after writing themselves checks totaling over $125,000. Siverling was sentenced on Sept. 30.

By Olivia Estright

ROCHESTER — A Rochester woman was sentenced to pay nearly $80,000 in restitution after pleading guilty to financially exploiting an elderly man, according to a sentencing order filed on Tuesday.

Colleen Marie Siverling, formerly Siverling-Keigher, 36, was charged with two counts of aiding and abetting the financial exploitation of a vulnerable adult with her now-ex-husband, Corey Jonathon Keigher, 35. The couple was charged separately, and Siverling entered a guilty plea in February.

In exchange for her guilty plea, one count was dismissed. Siverling was sentenced to five years of supervised probation and pay $79,718 in restitution. Olmsted County District Judge Pamela King ordered her to pay a monthly minimum payment of $50.

According to the criminal complaint, the pair wrote themselves checks totaling $125,025.25 from the bank account of a man over whom Siverling had a power of attorney order.

The investigation into the couple began in January 2022 after the Olmsted County Sheriff's Office received a vulnerable adult maltreatment report.

The couple told an investigator with OCSO that they had been working to improve the man's home after he went into a hospital in February 2019 for his fourth stroke.

The man, who is in his 80s, resides in a memory care facility in Olmsted County.

Siverling told the investigator that a lawyer told her to charge $25 an hour while serving as the man's power of attorney.

The couple provided no invoices or proof of any home improvements but did say they used the money to purchase new tires for their camper and bought around $4,000 dollars of jewelry for Siverling.

A pretrial hearing is scheduled for Keigher in March 2025.

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Rochester woman to pay $80K in restitution after financially exploiting elderly man

Brandon woman ordered to pay over $100k for exploiting elderly adult

By Dakota News Now staff

SIOUX FALLS, S.D. (Dakota News Now) - A 58-year-old Brandon woman has been ordered to pay $107,000 in restitution after stealing money from an elderly adult to gamble.

According to South Dakota Attorney General Marty Jackley’s office, Coralee Multerer was sentenced Thursday in a Minnehaha County Circuit Court.

Multerer pled guilty to one count of Grand Theft by Exploitation after she was found to have stolen from an elderly adult between December 2020 and October 2022. She used the power of attorney to steal money from the victim’s account to gamble and for other uses that were not for the victim’s benefit.

Although the Attorney General’s Office recommended Multerer serve five years in prison with five years suspended, the judge ordered that Multerer pay $107,000 in restitution with all prison time suspended.

“This defendant violated her position of trust to a vulnerable member of our society,” said Attorney General Jackley. “I appreciate the work of the Attorney General’s Office’s Elder Abuse Unit for investigating and prosecuting the case.”

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Brandon woman ordered to pay over $100k for exploiting elderly adult

Plymouth resident sentenced on elder exploitation charges

By ADAM DRAPCHO

PLYMOUTH — Michelle Trojano, who previously pleaded guilty to two counts of felony theft, has been sentenced by Grafton Superior Court to 12 months of incarceration. She has also been ordered to pay restitution to her victims.

Trojano, 30, of Plymouth, was prosecuted by the Attorney General’s Office Elder Abuse and Financial Exploitation Unit for two thefts, each considered felonies involving amounts greater than $1,500.

The first charge accused Trojano of exercising control of another person’s bank account from December 2017 to June 2019, “with a purpose to deprive” the rightful owners of the account, according to a press release from the Attorney General’s office. On this charge, Trojano was sentenced to 12 months in the house of corrections, and was ordered to pay $159,759.54 in restitution.

A second charge held that Trojano had gained similar control over another person’s bank account from April 2 to April 26, 2019. For this charge, Trojano was given a suspended sentence of up to seven years in state prison, and was ordered to pay restitution of $8,300.

A LinkedIn profile matching Trojano’s name listed her occupation as a teacher at New Hampton School. A person who works in New Hampton School’s human resources department said Trojano is not currently an employee of the school, but couldn’t say whether she had previously worked there.

The case was investigated by Plymouth Police Department and prosecuted by Bryan J. Townsend II, senior assistant attorney general, of the elder abuse and financial exploitation unit.

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Plymouth resident sentenced on elder exploitation charges

Rochester woman ordered to pay $11K in financial exploitation case

By KAALTV

(ABC 6 News) – A Rochester woman was ordered to pay more than double the estimated amount she took from a vulnerable adult’s bank account in restitution Monday, Jan. 29.

Jamie Lynn Lambert, 47, pleaded guilty to financial exploitation of a vulnerable adult in November of 2023.

On Monday, she was sentenced to 5 years of supervised probation and ordered to pay $11,491.83 in restitution.

Lambert was also ordered to complete 100 hours of community service, and may not serve as power of attorney for any vulnerable adult.

According to court documents, Lambert received a stay of adjudication — meaning that if she completes her probation and other conditions without incident, the felony will not go on her criminal record.

According to court documents, the Minnesota Adult Abuse Reporting Center spoke with a social worker in February in 2023, who provided bank statements for a woman who had suffered a stroke and been diagnosed with Alzheimer’s disease.

The woman lived in a Rochester facility.

According to court documents, Lambert was the woman’s power of attorney. Bank documents indicated that Lambert was transferring money from the senior’s account into her own checking account, then using the money to purchase food, alcohol, clothing, and sporting equipment.

According to court documents, Lambert first claimed the funds were being used for the senior’s benefit, but after viewing purchases for sports photography, sporting goods, and hotels with law enforcement, said she had “no excuse” for spending the funds herself.

According to the MAARC, the senior’s monthly liability had not been paid in months, and Lambert had not responded to facilities’ requests that she provide new shoes and clothing for the senior.

Bank statements indicated that Lambert used “at least $5,000” of the woman’s money for her own benefit.

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Rochester woman ordered to pay $11K in financial exploitation case

Former professional guardian Traci Hudson sentenced to 8.5 years in prison for theft, exploitation

Hudson pleaded guilty to 19 felony counts

By: Adam Walser

CLEARWATER, Fla. — A former professional guardian appointed by the court to care for elderly people under her care pleaded guilty to felony charges in Pinellas County court this afternoon.

The ABC Action News I-Team has been covering the case for over three years and was in the courtroom today when the plea happened.

Traci Hudson will spend 8.5 years in prison and then will spend 20 years on probation.

She will also be responsible for paying more than $575,000 in restitution to her victims after changing her plea from “not guilty” to “guilty” on all counts in Pinellas County Circuit Court Judge Susan St. John’s courtroom.

At the conclusion of the hearing, Hudson was fingerprinted, handcuffed and escorted by deputies to the Pinellas County Jail, where she will await transportation to a state prison to begin serving her sentence.

Under state law, she must serve at least 85 percent of her sentence before being released.

Plea comes 3 ½ years after arrest

Hudson was first arrested in November 2019 after records showed she took more than half a million dollars from a 92-year-old man under her care.

Hudson was appointed by the court to manage the finances, health care and other life decisions for at least 45 elderly adults who had been declared “incapacitated” by judges.

After her initial arrest, her guardianship cases were audited, resulting in 18 more felony counts, including exploitation, grand theft and perjury.

The prosecutor said in a memo that Hudson could have faced up to 135 years in prison if convicted on all counts.

Hudson is the former president of the Guardianship Association of Pinellas County.

A 77-page report from the Pinellas County Inspector General released last year alleged she often billed wards for working more than 24 hours in a day, paid realtors up to 18 percent commissions from the sale of her ward’s properties, altered inventories, and had tens of thousands of dollars worth of her wards’ belongings come up missing.

Hudson failed to show up for a court hearing to face her most recent charges in April.

A Pinellas Park Police report says her daughter grew concerned and asked for a welfare check at a Marriott hotel, which was Hudson’s last known location.

Hudson was found there “on the floor unresponsive.”

According to the report, “there was a substantial likelihood that Hudson attempted to commit suicide” and that Hudson met Baker Act criteria and was hospitalized.

In court Monday, Hudson admitted to stealing money, guns and jewelry from elderly victims under her care.

Some of Hudson’s victims’ family members and guardianship reform advocates attended Monday’s sentencing hearing.

"We have so many victims that have been taken by Traci Samuel Hudson that, as we speak, not getting justice," said guardianship reform advocate Hillary Hogue, who reported Hudson multiple times to the state Office of Public and Professional Guardians.

That's the watchdog agency set up by the state to ensure professional guardians comply with state law.

Lesa Martino was also at the hearing.

She lost her home after losing a libel/slander lawsuit filed by Hudson in 2018, the year before Hudson's arrest.

Martino alleged Hudson didn't provide adequate care to her father, Roland Martino.
 
"I think she's, like in her mind, like she didn't do anything wrong. She blames the system," Martino said.

 "She just pled guilty to every charge that was put to her. That is the biggest and strongest way you can take accountability for anything in this country," said Hudson's attorney Richard McKyton.

Another Florida professional guardian is scheduled to enter into a plea deal in Hillsborough County court later this month.

Rebecca Fierle was also arrested in 2019 following the death of a man under her care.

Her first trial last year ended in a hung jury.

Hudson will be 83 years old when she finishes her prison sentence and probation.

Full Article & Source:
Former professional guardian Traci Hudson sentenced to 8.5 years in prison for theft, exploitation

 

 

See Also:
Professional guardian Traci Hudson's trial on 2019 charges delayed again

Embattled former professional guardian Traci Hudson found ’unresponsive’ at hotel

Former professional guardian abandoned wards' mail, committed crimes: Inspector General report

Former guardian allegedly stole guns, forged appraisal

Former guardian charged with pillaging elderly man's estate refuses to sign final accounting

Price of Protection: Woman loses Seffner home after father's guardian sues her for libel

Guardianship ends in isolation from family, alleged neglect and death from COVID-19

77-page guardianship investigation exposes lack of oversight in Florida's system

New charges, new investigation involving embattled former professional guardians

Hotel owner placed in guardianship by St. Pete Beach realtor dies from COVID-19

Realtor seeks court-ordered guardianship to take away rights of elderly beach hotel owner

AARP Florida makes guardianship reform a top priority

Broken window results in more than $45K fine under former professional guardian's care

District Man Gets Time For Exploiting Disabled Family Member Unable To Make Decisions: Feds

Time will be served for a Washington, DC man who took advantage and financially cashed in on a family member suffering from cognitive disabilities, federal officials announced.

by Zak Failla

Tyronne Gregory Taylor, 53, has been sentenced to two years in prison after admitting to exploiting a family member for months in 2020 while he was in a hospital and unable to make decisions for himself.

According to court documents, between July and December 2020, Taylor gained unauthorized access to his family member's debit card while in a DC skilled nursing facility and had a field day with it.

Once in possession of his golden ticket, Taylor then used that ATM card to take out cash and make some luxury purchased at auto parts stores, hardware stores, restaurants, gas stations, liquor stores, hotels, and even treated himself to a new car.

To top off his scheme, prosecutors say that Taylor also used the card to make phony payments to TNTGreenConstruction, a company he owns a part of.

In total, more than $50,000 was stolen from his hospitalized family member, who was unable to communicate or make decisions for himself while the scheme was going on.

Taylor pleaded guilty in February to one felony count of financial exploitation of a vulnerable adult or elderly person. In addition to his prison term, he will serve five years of supervised probation when he is released.

The judge also ordered that Taylor pay $51,886.3 in restitution to his family.

Full Article & Source:
District Man Gets Time For Exploiting Disabled Family Member Unable To Make Decisions: Feds

Montgomery attorney to pay $345,000 to his victim of financial exploitation

by: Mubashir Zaidi

MONTGOMERY, Ala. (WRBL) — A Montgomery attorney, sentenced on the charge of financial exploitation, agreed to pay $345,000 to his victim, an elderly military veteran.

According to Alabama’s Attorney General’s Office, John Warren Godwin, 39, pleaded guilty and was sentenced by the Montgomery County Circuit Court to a ten-year suspended sentence with five years’ probation.

Earlier on May 1, agents with the Attorney General’s Office arrested Godwin, 

The Attorney General’s Office opened an investigation into Godwin’s conduct in June 2022 after receiving information from a local bank that identified suspicious transactions from the victim’s accounts.

That investigation revealed that Godwin was court-appointed in 2018 to represent D.N., an elderly veteran in need of emergency protective services who had no family to care for him.

Godwin admitted that he breached his fiduciary duty to D.N. by failing to pay property taxes on his home, which led to the property being sold to a third party at a tax sale.

Godwin further breached his duty by recklessly failing to redeem that property within the statutory period of three years. Because of his failure to reclaim the property, D.N.’s home was permanently lost.

As a condition of Godwin’s plea, he agreed to pay $345,000 in restitution to the victim (the value of the home lost in the tax sale), to permanently surrender his license with the Alabama State Bar, to disclaim any and all bequests, interests, inheritances, and duties from any and all last wills and testaments of the victim, and to pay all other court costs and fees.

In exchange for Godwin’s immediate cooperation, the State agreed to not bring any additional charges related to Godwin’s service as a guardian and conservator.

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Montgomery attorney to pay $345,000 to his victim of financial exploitation

Cleveland Heights Man Sentenced to Prison and Ordered to Pay $177k in Restitution for Credit Card Fraud Scheme

Department of Justice

U.S. Attorney’s Office

Northern District of Ohio

---

FOR IMMEDIATE RELEASE

Friday, September 16, 2022

Cleveland Heights Man Sentenced to Prison and Ordered to Pay $177k in Restitution for Credit Card Fraud Scheme

CLEVELAND - Carlos Dashawn Brown, 28, of Bowling Green and Cleveland Heights, Ohio, was sentenced on Wednesday, September 14, 2022, to 38 months in prison and ordered to pay $177,716.07 in restitution by U.S. District Judge Solomon Oliver Jr. after Brown pleaded guilty to the unauthorized use of an access device, bank fraud and aggravated identity theft.

“This defendant preyed upon disadvantaged individuals and depleted the savings of an elderly victim, all in an effort to make a quick buck for himself,” said First Assistant U.S. Attorney Michelle M. Baeppler.  “Law enforcement in this region will not stand for the targeting of vulnerable populations in our community.”

“Committing credit card fraud, bank fraud and identity theft against vulnerable populations is nothing short of a heartless crime,” said FBI Cleveland Special Agent in Charge Gregory Nelsen.  “Mr. Brown’s actions are appalling. This sentence underscores the commitment of the FBI to find and investigate predatory behavior by nefarious individuals.  The FBI is committed to protecting every American from fraudsters, whether one person or a network of criminals, through our work with federal, state and local partners.“

“This case is an example of the well-coordinated efforts of law enforcement and the U.S. Attorney’s Office to protect vulnerable and older Americans from financial exploitation,” said Inspector In Charge Lesley Allison for the U.S. Postal Inspection Service.   “The Inspection Service appreciates the steadfast dedication from our law enforcement partners and the U.S. Attorney’s Office in bringing those who perpetrate these scams to justice.”

“This sentence demonstrates our commitment to hold accountable those who intentionally misuse the Social Security numbers of others for their own personal gain,” said Gail S. Ennis, Inspector General for the Social Security Administration.  “Mr. Brown’s criminal actions brought financial harm upon vulnerable individuals.  I want to thank our law enforcement partners for their investigative efforts and the U.S. Attorney’s Office for prosecuting this case.” 

According to court documents, from April 2014 to January 2019, Brown perpetrated a credit card fraud scheme using the personal identifying information of multiple victims.  These victims were vulnerable due to their age and/or mental condition. 

As part of his scheme, Brown, without authorization, used the personal identifying information of these victims to open credit card accounts and make purchases, including travel, expensive goods and a vehicle.  Brown also stole more than $60,000 from one elder victim’s pension account and fraudulently caused multiple banks and creditors to issue Brown over $117,000 in refund checks to which he was not entitled.

In total, Brown caused an approximate loss of  $177,716.07 to all victims in the scheme.

This case was investigated by the Cleveland FBI, United States Postal Service Inspection Service (USPIS), Social Security Administration Office of the Inspector General (SSA OIG) and the Cleveland Heights Police Department.   This case was prosecuted by Assistant U.S. Attorney Justin Seabury Gould.

Source:

Cleveland Heights Man Sentenced to Prison and Ordered to Pay $177k in Restitution for Credit Card Fraud Scheme

 

Tyler woman accused in bilking scheme gets probation, must pay restitution

TYLER, Texas (KLTV) - A Tyler woman under federal indictment for participating in a money laundering scheme will avoid jail time and must pay back more than $100,000.

In a plea deal before District Judge J. Campbell Barker at the federal courthouse in Tyler, Tracey Lynn Brookshier had one charge dismissed and for a second count was given 36 months probation, a waived fine and also was ordered to pay $138,265.80 in restitution.

Brookshier was arrested in 2020 after federal prosecutors said Brookshier, and at least five others indicted, would “target seniors here at home through believable scams designed to rob them of hard-earned savings”. Allegedly they formed call centers and contacted victims, some of whom were located in the Eastern District of Texas, directly targeting elder victims to transfer funds to the defendants and other co-conspirators. The indictment claims that they impersonated Social Security Administration and IRS/Department of Treasury officials. Brookshier was charged with a money laundering conspiracy and operation of an unlicensed money transmitting business.

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Tyler woman accused in bilking scheme gets probation, must pay restitution

A Florida personal injury attorney who owes clients $396,000 is, essentially, disbarred

A Tallahassee lawyer accepts punishment for his handling of clients' money. [ Photo illustration by ASHLEY DYE and MARTHA ASENCIO RHINE | Times ]

By Miami Herald

MIAMI — A Tallahassee personal injury attorney already under emergency suspension for not turning over records of his trust account as the Florida Bar investigated client grievances decided, officially, to give up.

The Soto Injury Law Firm’s Gus Soto, a 65-year-old admitted to the Bar in 1984, gave up his career by applying for disciplinary revocation without leave to seek readmission. Soto’s application, which was accepted by the state Supreme Court, also says he’ll give up $396,931 in restitution to five clients who allege Soto misappropriated their settlement funds.

As the state Supreme Court states, “disciplinary revocation is tantamount to disbarment. " The attorney petitions for the action, either with leave to reapply in five years or without leave to reapply in five years. As far as professional discipline, the pending discipline cases disappear. Disciplinary revocation has no effect, however, on any civil or criminal matters borne from the attorney’s actions.

The state Supreme Court suspended Soto in May after Bar subpoenas for records from Jan. 1, 2018 through Aug. 31, 2021 didn’t produce “records for (Soto’s) Regions Bank trust account, closing statements, settlement agreements, client ledgers and documentation evidencing the whereabouts of remaining balances of clients’ settlement funds.”

A total of seven grievances had been filed. Soto’s application and the state Supreme Court’s acceptance of that application says, in 60 days, Soto must pay $86,500.00 to David Wofford; $20,000.00 to Tevin McCollough on behalf of Velma Bickers’ estate; $146,189.63 to James Surber; $137,875.00 to Daniel Hirsh; and $6,367.00 to William Nealy.

— David J. Neal Miami Herald (TNS)

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A Florida personal injury attorney who owes clients $396,000 is, essentially, disbarred

Judge sentences former public guardian to jail time, restitution for embezzlement

by Elizabeth Larson

 

LAKE COUNTY, Calif. – On Monday a judge sentenced a former Lake County Social Services employee to jail time, probation, restitution and community service for a case involving the theft of more than $13,000 from people under conservatorship, with some of the thefts including COVID-19 relief funds.

During the brief Monday afternoon sentencing, Judge Andrew Blum passed the sentence on 45-year-old Lakeport resident Susan Marie Marlowe.

Marlowe previously worked as a deputy public guardian and deputy public administrator for Lake County Adult Protective Services, which is part of Social Services.

In August, the Lake County Sheriff’s Office arrested Marlowe following a four-month-long investigation.

The sheriff’s office said Lake County Social Services reported the theft of debit cards from one of their offices at the start of April 2021, about three weeks after Marlowe’s employment ended with the county.

Those debit cards were issued as part of the economic impact payments to individuals who were under conservatorship with Social Services. A total of 21 of the cards, each with a value of $600, were reported missing, authorities said.

During the investigation it was determined Marlowe had access to the debit cards. Investigators also found that Marlowe had taken seven large withdrawals totaling $12,400 from the bank account of one of her conservatees. Authorities said Marlowe used fake invoices for repairs that didn’t occur to the conservatee’s home to take the funds.

A March complaint the District Attorney’s Office filed against Marlowe included five counts: elder abuse, embezzlement by a public officer, embezzlement, larceny and identity theft.

Through a plea agreement, Marlowe pleaded to the complaint’s count two, felony embezzlement by a public officer, with the rest of the counts dismissed with a Harvey Waiver so the court could consider the conduct in those counts in rendering a sentence. “This is especially important for restitution issues,” Senior Deputy District Attorney Rachel Abelson told Lake County News.

The plea agreement called for probation and a maximum of 120 days in county jail. “The decision of jail time was to be left open to the court if the court accepted the plea agreement,” Abelson said.

The Lake County Probation Department report recommended probation and 20 hours of community service, but no jail time, which Abelson argued against during the hearing. She said later she suspected no jail time was an oversight.

Pointing out that Marlowe had been in a position of trust as well as the amount of money taken, Abelson said she’d seen petty theft cases receive significantly more jail. She asked for the court to sentence Marlowe to 120 days in jail.

Defense attorney Sterling Thayer said the Probation Department isn’t shy about recommending tougher sentences, adding that petty theft cases involving people with records of repeated theft often do get more jail time.

However, Thayer argued that Marlowe’s case was an “isolated incident” and she wouldn’t err this way again. He said she was apologetic, realized what she did was wrong and has guaranteed she will pay restitution.

“Essentially she made a mistake and this is the best way to make amends,” to allow her to be on probation so she can pay people back, said Thayer, adding that putting her in jail will jeopardize her employment and her ability to pay back what was taken.

Judge Blum didn’t accept Thayer’s argument. “I was shocked that I saw Probation doesn't recommend that I give her any jail time,” he said, adding he didn’t agree with that recommendation.

As to whether jail time jeopardized Marlowe’s employment, “The fact that she stole from her last employer might do that too,” said Blum.

He said Marlowe was in a position of trust and stole COVID-19 relief money. “This is completely appropriate to give her a significant amount of jail time.”

Blum said the amount of money taken was large enough to justify a prison sentence, but Marlowe had no previous criminal record, which counted in her favor. He wanted her to pay restitution and said sending her to prison would make that more difficult. Blum also found she has the ability to pay fines and fees.

Blum sentenced Marlowe to two years formal probation and 20 hours of community service, pursuant to the plea agreement, and ordered her to serve 120 days at the Hill Road Jail. She did not previously serve any jail time so has zero time-served credits.

The judge asked Marlowe if she understood and accepted the terms.

Marlowe, who attended the sentencing via Zoom and appeared to be sitting in a vehicle, asked if she was eligible for an alternative work program or home detention.

Blum said those are the sheriff’s programs and so up to that agency, not the court. Thayer said he believed she was eligible for those programs.

In addition to the other terms of her sentence, Blum ordered Marlowe to pay fines and set her turn in date to the Hill Road Jail for 9 a.m. July 27. She also has to report to the Probation Department on Friday.

At Abelson’s request, Blum set an Aug. 3 restitution hearing for Marlowe’s victims.

 

Full Article & Source:

Judge sentences former public guardian to jail time, restitution for embezzlement

Former Caregiver Admits Financial Exploitation of Vulnerable Adult

by Patti Weaver

A Stillwater man, who admitted financially exploiting a vulnerable adult, was sentenced this week to six months in jail followed by four and one-half years of probation with conditions including having no employment with a vulnerable or elderly adult.

In accordance with a plea bargain with the prosecution, Richard Allen Foster Jr., 39, was also ordered by Associate District Judge Stephen Kistler to have a DNA test and pay $1,460 in various fees along with court costs.

Community Access, which provides live-in care for developmentally disabled individuals, believed that Foster, who was fired as a caregiver from the facility, was responsible for stealing a client’s Nintendo gaming system valued at $250, an affidavit by Stillwater Police Officer David Adney said.

\An investigation revealed that Foster pawned the gaming system on Jan. 14, 2020, after claiming he had owned it for a year, an affidavit said.

In a police interview, “Foster stated he purchased the gaming system from (the client), then pawned the item for $50. Foster admitted he was not supposed to enter into any financial agreement with a client who was developmentally disabled. Foster attempted to rationalize his actions,” the affidavit said.

Full Article and Source:

Former Caregiver Admits Financial Exploitation of Vulnerable Adult

AG Ferguson lawsuit nets $45M in debt relief, payments from Navient

FOR IMMEDIATE RELEASE: 

Jan 13 2022

Debt relief, restitution, will go to Washington borrowers impacted by Navient’s deceptive practices

SEATTLE — Attorney General Bob Ferguson today announced that, as a result of his lawsuit, student loan servicer Navient will provide nearly $45 million in debt relief, restitution and costs to resolve Washington’s lawsuit. Ferguson asserted Navient, the Sallie Mae offshoot that was then the nation’s largest student loan servicer, engaged in numerous unfair and deceptive practices harming Washington student loan borrowers.

Washington was the first state, along with Illinois, to file a lawsuit against Navient, and the first to obtain a judgment stating Navient broke the law.

The student loan giant will:

• Extend more than $35 million in debt relief, erasing the remaining debt of more than 1,400 Washingtonians who took out certain private student loans between 2002 and 2014 — an average of about $25,000 per person;
• Pay $2.3 million in restitution to approximately 8,900 Washington borrowers enrolled in forbearance for an extended period of time between 2009 and 2017; and
• Pay $7 million to Washington to cover costs from the complex, multiyear investigation and litigation, along with future enforcement of the state’s Consumer Protection Act.

Washingtonians do not need to take any action to receive these benefits. Borrowers receiving private loan debt cancellation will receive a notice from Navient, and they will receive refunds of any payments made on those loans after June 30, 2021. Washingtonians who are eligible for a restitution payment will receive a postcard in the mail from the Attorney General’s settlement administrator in the next several months. Federal student loan borrowers who may be eligible for a restitution payment are encouraged to update their contact information in their studentaid.gov account or create an account if they do not already have one.

For more details and the most up-to-date information, please visit www.NavientAGSettlement.com.

Borrowers who will receive restitution or debt relief span all generations: Navient’s harmful conduct impacted everyone from students who enrolled in colleges and universities immediately after high school to mid-career students who dropped out after enrolling in a for-profit school in the early 2000s.

“Higher education should not equal a lifelong debt sentence — and student loan corporations do not have the right to deceive Washingtonians in order to maximize their profits,” Ferguson said. “We are holding the country’s largest student loan servicer accountable, achieving hard-fought corporate reforms, and helping repair the damage they did to Washington borrowers. We will continue fighting to prevent the financial abuse of Washington students overburdened with debt.”

Forbearance was easy for Navient, bad for borrowers

Navient will pay restitution to Washington students it enrolled in forbearance instead of fully explaining the benefits of income-driven repayment plans. Navient unfairly pushed borrowers into forbearance, which was good for the company because it was simple and cheap, but resulted in long-term harm to most borrowers. Forbearance allowed borrowers to suspend payments temporarily, but their interest continued to accumulate. When repayment resumed, the accumulated interest would be added to the loan principal, meaning borrowers ended up paying interest on their initial interest. Unlike forbearance, income-driven plans offer the possibility of loan forgiveness after 20 or 25 years of qualifying payments, and can provide valuable interest subsidies. Under income-driven plans, payments can be as low as $0 per month. 

Resolution details

Ferguson submitted the proposed consent decree for entry today in King County Superior Court. The consent decree still requires court approval.

Today’s consent decree will apply to thousands of Washingtonians:

• Approximately 847 Washingtonians who, from 2002 to 2014, took out subprime private student loans, and had delinquent payments for more than seven consecutive months prior to June 30, 2021. Any remaining balances on these loans will be canceled.
• Approximately 717 Washingtonians who, from 2002 to 2014, took out non-subprime private student loans to attend certain private, for-profit colleges (including ITT, DeVry, Corinthian Colleges and University of Phoenix), and who had delinquent payments for more than seven consecutive months prior to June 30, 2021. Any remaining balances on these loans will be canceled.
• Washingtonians who contacted Navient due to long-term financial hardships with their non-Parent PLUS federal student loans, and were enrolled into forbearance for an extended period of time. The approximately 8,900 eligible student borrowers can expect to receive a check of around $260 in the coming months.

Today’s consent decree also contains extensive injunctive terms to prevent Navient from engaging in similar harmful conduct in the future.

It also requires Navient to notify borrowers of the U.S. Department of Education’s important recent changes to the Public Service Loan Forgiveness (PSLF) program, which offers millions of qualifying public employees a waiver that may count past payments or periods of repayment toward loan forgiveness.

Ferguson encourages all Washington residents who work in the government or non-profit sectors to review the PSLF website or consult the Washington Student Loan Advocate’s website to determine whether they might qualify for loan forgiveness.

Student loan borrowers with questions or complaints about their student loans can contact the office of the Washington’s Student Loan Advocate by using the Washington student complaint portal at studentcomplaints.wa.gov.

On Oct. 20, 2021, Navient transferred its servicing of 5.6 million loans owned by the U.S. Department of Education to a company named Maximus, which will service loans under the brand name AidVantage. Following completion of this transfer, Navient will continue to service its existing portfolio of private student loans and legacy Federal Family Education Loans issued before the program ended in 2010.

Nationwide relief

Ferguson, along with the Attorneys General for Illinois, Pennsylvania, California, Massachusetts, Ohio and North Carolina, as well as the Consumer Financial Protection Bureau (CFPB), led an investigation into Navient’s business practices. Ferguson, the Illinois Attorney General and the CFPB filed the initial lawsuits against Navient on the same day in January 2017, then other states followed.

Under the terms of the settlement, Navient will cancel the remaining balance on nearly $1.7 billion in certain private student loan balances owed by 66,000 borrowers nationwide in 39 states. In addition, Navient will pay $142.5 million to 32 state attorneys general. In addition, Navient will alert consumer credit bureaus to reflect the debt cancellation on the borrowers’ and co-signers’ credit reports, and refund certain payments sent after June 30, 2021.

Ferguson’s lawsuit first to result in a judge ruling against Navient

Ferguson’s lawsuit asserted that Navient deceptively promoted a “co-signer release” feature of private loans to entice family and friends to co-sign loans. However, Navient put up barriers to obtaining co-signer release without informing consumers in advance, and failed to disclose that very few borrowers ever achieved co-signer release.

In March 2021, King County Superior Court Judge Veronica Galván ruled that Navient violated the state’s Consumer Protection Act with its unfair and deceptive conduct related to this program. It was the first time a judge ruled that Navient broke a consumer protection law in a student loan servicing lawsuit filed by a state’s Attorney General or federal consumer protection agency.

The lawsuit also asserted Navient engaged in additional illegal business practices:

• Made subprime, predatory loans to students attending for-profit colleges with low graduation rates, despite its own expectations that a very high percentage of borrowers would not be able to repay those loans;
• Committed unfair and deceptive acts by offering financially distressed student borrowers a forbearance instead of informing them of the terms and benefits of federal income-driven repayment plans;
• Failed to inform those borrowers who chose repayment programs based on their income that they had a yearly obligation to re-certify their income and family size;
• Misapplied borrower payments, and failed to provide a way for borrowers to submit standing instructions for how to allocate excess payments; and
• Trained its agents to deceptively ask borrowers to pay an amount that included the next upcoming regular payment, without clarifying this was not necessary to fix a delinquency.

Assistant Attorneys General Julia Doyle, Heidi Anderson, Craig Rader, Kathleen Box, Seann Colgan, Tad Robinson-O’Neill, Daniel Allen, Joe Kanada, Mina Shahin and Audrey Udashen; investigators Lourdes Fuentes, Victoria Suner, Rebecca Hartsock, Anton Forbes and Christopher Welch; paralegals Javier Trasvina, Kelli Goins and Amanda Bartling; and legal assistants Michelle Paules, Christopher Kiefer, Joshua Bennett, Kristina Winfield and Serina Clark handled the case for the Attorney General’s Office.

Former Senior Assistant Attorneys General Trisha McArdle and Shannon Smith, and former Assistant Attorney General Benjamin Roesch also worked on the case, but have since left the Attorney General’s Office.

Ferguson’s focus on reforming student borrowing

Ferguson proposed the Student Loan Transparency Act in 2017 as Attorney General-request legislation. The act requires schools to provide students basic information on their student loans. The bill passed overwhelmingly in the House with a bipartisan vote and unanimously in the Senate.

In 2018, the Legislature passed the Student Loan Bill of Rights, which Ferguson requested to provide vital protections to Washington state’s student borrowers. The law created a dedicated student loan advocate to help students navigate the murky world of loan servicers and adopted standards for student loan servicers. The law also provided students with basic guarantees: Student loan servicers must credit borrowers’ payments within one business day, respond to requests for information promptly in writing and refund fees assessed in error, among other standards.

Ferguson has previously obtained millions of dollars in debt relief for thousands of student borrowers who attended for-profit colleges that used misleading and deceptive recruitment practices. He has also recovered almost $1.6 million cracking down on debt adjustment companies that charge fees to help borrowers consolidate their federal student loans and enroll in income-driven repayment plans — tasks that borrowers’ loan servicers can and should help them with free of charge.

To assist student loan borrowers in Washington, the Attorney General's Office has compiled a Student Loan Survival Guide. This guide provides tips and links to resources to help high school students thinking about attending college, former college students who are not able to keep up with their payments, parents of students and everyone in between. 

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AG Ferguson lawsuit nets $45M in debt relief, payments from Navient

Probation granted woman who financially exploited her mother

by Jeff Lehr

Jan. 12—A Carl Junction woman received a suspended sentence and probation when she pleaded guilty this week to financial exploitation of her mother.

Brittney M. Clark-Haag, 21, pleaded guilty Monday in Jasper County Circuit Court to financial exploitation of an elderly person in a plea agreement capping the sentence she might be assessed at no more than five years and promising that the prosecutor's office would not oppose the possibility of a suspended sentence and probation.

Circuit Judge Gayle Crane accepted the plea deal and assessed Clark-Haag five years on the conviction, with execution of the sentence suspended and the defendant placed on supervised probation for five years. The judge further ordered that she is to pay $2,271 in restitution to her mother.

According to a probable-cause affidavit, the defendant used her 75-year-old mother's bank card to make purchases from various local and online businesses between Oct. 21 and Nov. 26, 2019. The expenditures included two wire transfers totaling $1,019,98 and $739.65 worth of transactions at local restaurants.

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Probation granted woman who financially exploited her mother

Former Limestone County deputy pleads guilty to financially exploiting the elderly

by: Zach Hester

(WHNT) — A former Limestone County deputy pleaded guilty to financially exploiting the elderly, the Limestone County District Attorney’s Office announced on Friday.

Officials say William Rodney Jackson of Athens pled guilty to the Class B felony and was sentence to five years in the penetentiary. He will begin his sentence with three years of probation.

In a press release, the district attorney’s office said Jackson intentionally deceived four people over the age of 60 and took their money, which violates Alabama’s Financial Exploitation of the Elderly Act.

“Alabamians are fortunate that we have laws that allow the prosecution of those who look to exploit the elderly financially,” said Joseph P. Borg, director of the Alabama Securities Commission. “We want the message to be clear, that if you financially exploit anyone, especially an individual over the age of 60, there will be serious consequences.”

As part of Jackson’s plea agreement, he will pay $13,500 in restitution. Officials say Jackson paid $6,500 at the time of his sentencing and is required to pay the remaining balance by December 2023.

Additionally, the district attorney’s office said Jackson is barred from the securities industry, and will serve time in jail if he violates the terms of his sentence.

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Former Limestone County deputy pleads guilty to financially exploiting the elderly

Southwest Virginia woman sentenced in elder fraud case

by Robert Sorrell

A Southwest Virginia woman will serve prison time for stealing more than $17,000 from an elderly woman she was supposed to be taking care of, according to Wise County's chief prosecutor.

Rendy Eva Hale, 38, of Dante, previously pleaded guilty to five counts of credit card forgery and five counts of credit card fraud, Wise County Commonwealth’s Attorney Chuck Slemp said in a news release Thursday. Hale received a five-year sentence, with three years and eight months suspended. As a result, she’ll serve one year and four months in prison.

Slemp said Hale was hired as a caregiver around Thanksgiving 2019 to aid an older woman who needed help because of some extensive medical issues. Instead of caring for the woman, Hale stole more than $17,000 of her employer’s retirement funds in just a few short months and hid the theft by intercepting mail from her employer’s bank.

In Wise County Circuit Court, the judge also ordered Hale to complete probation and pay $17,313 in restitution.

“Elder abuse refers to crimes of violence, instances of neglect, and fraud or financial exploitation targeting older adults,” Slemp said. “Elder abuse is a growing epidemic in our area that deserves our attention.”

The National Council on Aging estimates that up to 5 million older Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be at least $36.5 billion. The organization says one in five Americans ages 60 and older has experienced some sort of elder abuse.

Virginia seniors may be losing $3 billion a year, according to data. The Virginia Department of Aging and Rehabilitative Services reports that more than 12,000 cases are reported each year.

“My office remains dedicated to raising awareness in hopes of preventing elder abuse, and we will continue to aggressively prosecute any and all crimes against the elderly,” Slemp said.

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Southwest Virginia woman sentenced in elder fraud case

Carl Junction man receives plea deal in financial exploitation case

By Jeff Lehr

A Carl Junction man was allowed to plead down to a misdemeanor offense this week in a case of financial exploitation of an elderly woman and received a suspended sentence and probation.

Garyn L. Adams, 27, pleaded guilty in Jasper County Circuit Court to a misdemeanor count of stealing in a plea agreement and was sentenced by Judge Gayle Crane to one year in jail, with execution of the sentence suspended and the defendant placed on unsupervised probation for two years.

Adams was charged in August 2019 with a felony count of financial exploitation of an elderly person following an investigation by Carl Junction police of money taken from an 86-year-old woman's bank account without her approval.

A probable-cause affidavit stated that Adams gained access to the bank account and began making fraudulent charges by setting her up for online banking, creating a PayPal account using her Social Security number and transferring money to PayPal accounts belonging to him and a second person.

The affidavit alleged that he tapped the account for more than $1,000. The judge ordered as part of his sentencing that Adams pay the remaining restitution in the case of $63.82.

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Carl Junction man receives plea deal in financial exploitation case

Woman placed on probation in exploitation case

Tristen Brewer

By CJ Baker

A local woman has been ordered to serve three years of supervised probation for exploiting an elderly Meeteetse resident in 2019.

Tristen Brewer, 25, reportedly had been serving as the caretaker of a 69-year-old man who, according to authorities, was unable to care for himself. However, when personnel from the Park County Sheriff’s Office and the Wyoming Department of Family Services visited the man’s home in the summer of 2019, they found him in poor health and the house in disarray. Deputies also gathered evidence indicating that Brewer had used his funds to make purchases without his permission.

As part of a deal with prosecutors, Brewer pleaded guilty to a felony count of exploiting a vulnerable adult, which related to the misuse of the man’s money. She also agreed to pay $656.99 in restitution.

Meanwhile, with the approval of the victim in the case, prosecutors dropped a second count, alleging Brewer had failed to provide adequate care, and stipulated to a sentence of probation.

At a Thursday sentencing hearing, both Brewer’s court-appointed defense attorney and the prosecutor said she has made significant changes in her life over the past year-and-a-half.

“Obviously this is a serious offense but … she has clearly rehabilitated herself,” said Deputy Park County Attorney Jack Hatfield. He said the offense was clearly based on Brewer’s drug use at the time — and now she is sober.

Hatfield went as far as to say that, assuming she successfully completes probation, he hopes Brewer seeks a pardon from the governor to remove the felony conviction from her record.

A probation and parole agent who compiled a pre-sentence report had explicitly concluded that Brewer was an appropriate candidate for probation and was at low-risk for reoffending — something public defender Branden Vilos called a rarity.

In representing her over the past year, Vilos personally attested that the transformation Brewer has made in her life has been “unreal.” 

“‘I know that if the court provides her with this opportunity with this probation, that she will be successful,” Vilos said. “I know she will be.”

Brewer had effectively no prior criminal offenses on her record when authorities visited the Meeteetse residence in the summer of 2019. When Deputy Rob Cooke entered, he noticed the strong smell or urine, along with sticky floors, dog feces all over the basement from Brewer’s dog, a dirty stove, cluttered countertops and trash everywhere, court records say.

The Department of Family Services had visited the home multiple times over a period of several years out of concern the man wasn’t taking care of himself, including earlier in 2019. However, the man had declined any assistance until the visit on July 1. When he requested medical help, it was “a definite [change] from previous encounters,” Cooke wrote.

Authorities say the man had lost a significant amount of weight since the last visit and had little food, while his fingernails had grown so long they were growing into the palm of his hand, according to charging documents.

The man was taken to Cody Regional Health by ambulance, where he was found to be dehydrated, malnourished and suffering from bed sores. The man was subsequently admitted to the hospital, where his health improved.

Brewer reportedly told the sheriff’s office she’d been taking care of the man for roughly a year in exchange for getting a place to live. However, the man — who was unable to get up on his own — told a deputy that “he felt like she [Brewer] put him on the back burner when she got busy with other things,” charging documents say.

Beyond there being little food in the home, authorities found some of the man’s bills had gone unpaid; they also identified some unauthorized charges and learned Brewer was in charge of the man’s checkbook.

However, at a preliminary hearing in October 2019, Brewer’s then-defense attorney questioned the evidence tying her to the purchases and whether she was the one responsible for taking care of the man; at the hearing, Deputy Cooke indicated another person had been helping.

In an interview, Vilos said investigators found evidence indicating that the person — who has not been charged — used the man’s debit card without permission. In court, Vilos called it a “very complicated case,” saying there were “a lot of different factors involved.”

However, rather than go to trial, Brewer “wanted to take responsibility for her involvement in this case,” Vilos said, “and I think that speaks volumes about this.”

District Court Judge Bobbi Overfield accepted the plea deal, suspending two to four years of prison time in favor of the probation. Brewer also received credit for the month-and-a-half she served in jail following her initial arrest, while being ordered to pay $260 in court fines and fees.

While on probation, Brewer will be required to follow a lengthy list of conditions, including some related to avoiding drugs and alcohol.

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Woman placed on probation in exploitation case

 

Disbarred Manhasset attorney sentenced in stolen funds scheme

By: Adina Genn

A disbarred attorney was sentenced for using stolen funds to pay restitution in an earlier case, the Nassau County District Attorney’s office said Wednesday.

Alfred DiGirolomo, Jr., of Manhasset, was sentenced to 1-1/3 years to four years in prison for stealing $675,000 from clients and using a portion of the stolen money to pay restitution on an unrelated NCDA case in which he pleaded guilty in April 2019 to stealing nearly $230,000.

DiGirolomo pleaded guilty in December to three counts of grand larceny to stealing the $675,000. He had pleaded guilty for stealing the $230,000 in 2019.

When he was sentenced on Monday, he was ordered to pay restitution for $680,000.

“Alfred DiGirolomo swindled multiple clients to pay for country club dues and cigars, and in one case, stole from one client to repay another victim,” District Attorney Madline Singas said in a statement.

DiGirolomo’s attorney, Robert Del Col, told Newsday that his client made “poor decisions” and  got “tangled up with some rather disreputable clients.”

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Disbarred Manhasset attorney sentenced in stolen funds scheme

Palmer man sentenced to 24 Months for wire fraud

By Jacob Mann

WASILLA — Faunus Michael Doney, 37, of Palmer, was sentenced to serve two years for committing wire fraud.

United States District Court Judge Joshua M. Kindred sentenced Doney to serve 24 months in prison with three years of supervised release after pleading guilty to wire fraud on Sept. 22, 2020, according to a recent press release from the U.S. Attorney’s Office in Anchorage.

Doney was also ordered to pay over $377,000 in restitution to the victims of his fraudulent scheme that defrauded three victims from August 2018 to at least June 2019, according to the press release.

Doney was a licensed insurance broker in Alaska and worked for a life insurance and annuity company based in Iowa. He was was responsible for marketing life insurance and annuities to new and existing clients in Alaska. Many of these clients were elderly and purchased those products to secure income in retirement or for estate planning.

Doney made his way across the state hosting seminars that were setup to lure elderly Alaskans into investing in his products. He convinced the three identified victims to invest much of their retirement savings with him with the promise of substantial and guaranteed returns.

There were no investments. Doney just redirected the victims’ funds to his personal and business accounts, conjuring up fake balance sheets, account statements, and other doctored evidence and to allay his victims’ concerns.

Assistant U.S. Attorney James Klugman served as the prosecutor for Doney’s case. The IRS-Criminal Investigation (IRS-CI conducted the investigation with additional assistance from the Federal Bureau of Investigation (FBI), and the State of Alaska Division of Insurance. Their combined efforts eventually led to a successful prosecution.

According to the press release, Kindred stated that he hoped Doney’s sentence would “send a message to Doney and others that fraudulent conduct on this scale will be met with serious consequences.”

The press release also indicated that combating elder abuse and financial fraud targeted at seniors is one of the Department of Justice’s key priorities.

Physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse are the five subtypes of elder abuse. Elder abuse is said to affect at least 10 percent of senior citizens across the country each year.

To learn more about the Elder Abuse Financial Exploitation Resources, visit justice.gov/elderjustice/roadmap.

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Palmer man sentenced to 24 Months for wire fraud